AEMC rule change - Compliance with dispatch instructions

On 17 September 2015, the Australian Energy Market Commission (AEMC) began consultation on a rule change request from Snowy Hydro.

Snowy Hydro's proposed rule change seeks to amend registered participants’ obligation to comply with dispatch instructions issued by the Australian Energy Market Operator (unless to do so would, in the participant’s reasonable opinion, be a hazard to public safety or materially risk damaging equipment). Snowy Hydro proposed a two limb test which requires participants to use reasonable endeavours to comply and incorporates AEMO’s non-conformance process (as provided for by clause 3.8.23).

Consultation paper

On 23 October 2015 we provided a submission in response to the consultation paper. We oppose the rule change proposal and reiterate our stated expectation that participants comply with the dispatch instructions as set out under 4.9.8(a).

AER submission to the AEMC - Compliance with dispatch instructions rule change consultation paper - 23 October 2015 ( PDF 493.24 KB | DOCX 230.14 KB )

Draft determination

On 11 February 2016 we provided a submission in support of the AEMC's draft determination. In the draft determination, the AEMC declined to make any changes to the current obligation to comply with dispatch instructions. Our submission discussed our approach to compliance and enforcement in this area and the importance of the current obligation to system security and efficient market outcomes.

AER submission to the AEMC - Compliance with dispatch instructions rule change draft determination - 11 February 2016 ( PDF 297.38 KB | DOCX 65.06 KB )

More information

More information on AEMC's proposed rule change can be found on the AEMC's website.